tv On the Money NBC April 24, 2016 5:00am-5:31am EDT
hi, everyone. welcome to "on the money," i'm becky quick. contamination crisis. we've all heard about the tainted water in michigan but the problem may be broader than you think and the price fix to fix it all is astounding. solutions for your retirement. the answer could surprise you. from pop warner to all pro, we'll tackle to the dangers to football, some that you may not know about and what it means for your kids if they play. is it hard or something else? the sweet taste for success for one entrepreneur. >> going in. it's such a heat. >> "on the money" starts right now. >> this is on the money, your life, your future. now, becky quick. >> we begin with a question how
safe is it to bring water into your home? residents of flint, michigan, found out that their pipes were not safe and have been living under a state of emergency. just this week, criminal charges have been announced against two state officials and another official of the city of flint. governor rick snyder is suggesting to enact the toughest laws in the nation. where else is toxic tap water lurking? that is our cover story. here is more. >> reporter: the critical water situation in many regions throughout the country is causing protests. according to data from the environmental protection agency, over 7,000 schools subject to the epa lead and copper rule, 431 reported heightened levels of lead between 2012 and 2015? according to the epa, only nine u.s. states have reported safe levels of lead in their water
supply, including al la bam yeah, north dakota, south dakota and tennessee. the rest of the states at one point recorded higher than acceptable levels of lead in drinking water throughout that time period. a major factor? pipes are more than 100 years old. the infrastructure is underground and the conditions of the pipe is often unknown until a water main ruptures. with older cities like new york, philadelphia and boston in greatest need of repair. that's why experts say more focus should be placed on how that water is delivered. >> in general, the water quality in the united states is very high. the infrastructure that is conveying that water is in serious need of investment right now. if we continue on the path that we're on now and if we do not increase investment in these areas, we're putting at risk by the year 2020 over $400 billion
in u.s. gdp, 700,000 jobs would be endangered and over half a trillion dollars in personal income would be a risk. >> reporter: newark, new jersey, is in the spotlight as well. tests in at least 30 schools there came back with contaminated water levels. >> does it need help? yes. are we flint, michigan, no, we are not. but the public schools are almost a mini flint in upwards of 10, $20 million if they are going to retrofit with the plumbing in some of these buildings. some are over a century and a half old. >> elevated lead and copper levels were recently found in 19 detroit public schools as well, almost a third of those tested. the epa suggests that schools implement programs for reducing lead in drinking water. however, there is no federal law requiring testing in child care facilities or schools except for
those who have their own water supply. >> it's unbelievable. you you a assume we're drinking safe water how much would it cost to fix this problem? >> as long as state and local and federal governments work together, it's going to take $80 billion over the next nine years to protect against losses of upwards of $150 billion because this is something that affects every business, every home. so they are saying, let's tackle the problem now before it becomes this major issue. >> okay. dana, thank you very much. is the solution to flint's water problem within reach? lansing, michigan's capital, knew that it had a lead problem and began replacing the pipe there is 14 years ago. the $42 million project is almost complete at this point. the mayor of lansing, thank you for joining us today. >> my pleasure, becky. >> you know, you're sort of removing lead pipes in lansing back to 2004. how did you know this was a problem and how did you pay for it? >> actually, just like in frili,
the citizens brought it to our attention and we started looking into it and that's when i learned about the lead and copper rule that is now under attack and under the microscope, as it should be, and how loose the requirements are for testing. we dug into it. we expected direct answers and we expected positive answers and we didn't get them. we got rather vague answers and when we looked into the testing procedures, we were not convinced that the water was safe. and we started asking about lead and what are the safe levels of lead and there isn't one. especially for kids. >> uh-huh. >> and so we said the prudent thing to do was to improve the testing and get the lead out and we began a process that ended up costing $42 million over 10 or 11 years and we're at the end of that process. but i encourage people around the country to look into it, talk to your water utility, find out what is done, find out where the lead pipes are, find out how old they are, find out about the testing regiment that is used because there's an issue of first flush, second flush. the lead and copper rule
seems -- >> what's the first flush, second flush? what's that rule? >> well, they flush the water for a period of minutes before the run the test. >> meaning that anything that's been sitting in the pipes that may be lead pipes leading up to the actual water fountain or spout that you may be drinking from -- >> bingo. that the toxins would be cleared out by the time they tested it. it was as though they didn't want honest test results and rigging the system to get the results to say that it was safe and there's this talk about we don't want to panic people. i'm not here to panic people. but when we looked into it in lansing, we didn't get very good answers and we felt the prudent and safest thing to do was to get the lead out and they still haven't done that in flint. >> i think you're right. i think that we are not as safe as people had assumed up to this point. what needs to happen? >> in terms of what can be done, because we've done it in lansing, we've sent our crews over to flint and worked with the mayor and the mayor has designed a plan where we can do it and we think it can be done
in a year with 30 crews and $55 million. 55 million. not 50 billion. there has to be an element of urgen urgency lead by the governor and instead the governor says i'll drink the water for a month. he wants to do a publicity stunt and those folks are living with it day in and day out. how are people going to live and work? those lead pipes have got to go. >> mr. mayor, i know this is an issue you've been active on for quite a while. you lost of the governor's race back to governor snyder back in 2010. are you planning on running again? >> i am not. i've been meticulous not to attack the governor. i don't care who is governor. we've replaced these pipes and perfected d a system of threading instead of trenching. >> what's threading versus -- i know what trenching is. what's threading? >> our people on the ground developed a tool. trenching you cut out a hole from the street to the house and replace the pipe. in the threading system, they
dig a hole out of the street and by the house and they essentially pull the led pipe and thread a needle. the system is wonderful. it's cut the time and the money and 3, $4,000 per home and it should be done. >> should be done nationally. correct? >> the infrastructure has got to be replaced. we've got to build things again. our roads are detear rating. and then the stuff under the ground, out of sight, out of mind. >> exactly. >> it will come back to haunt us. >> people who do those tests, find out where your water is coming from and how safe it is. >> you are obviously very impassioned about this. i am, too. i've been looking to getting water tested at my house. thank you very much for joining us today. >> thank you so much, becky. take care. now here's a look at what is making news. vw will be writing a $10 billion check. the company reaching a settlement in federal court this week to buy back or fix half of the million diesel vehicles that
have rigged software showing low emissions levels. the world's number two automaker could face criminal charges from the justice department. stocks fell on thursday breaking a three-day winning streak after closing at the highest level of the year. we don't usually report initial jobless claims but they fell to a 42-year low. 247,000 people fell for unemployment benefits for the first time and the few west since 1973 and the signing of the growing strength of the jobs market. good-bye andrew jackson, hello harriet tubman. she will be replacing slaveholder jackson on the $20 bill. a woman hasn't appeared on u.s. paper money in over a century. alexander hamilton is on the $10 bill. up next, we're "on the money," football season is fast approaching. concussion mixed with brain
disease, is the game of football too risky for players of any age? and later, putting your savings on autopilot. plans taking some of the guesswork out of reaching your goals. but do they deliver results? as we head to a break, take a look at how the stock market ended the week. n, i'm glad afla. aflac! isn't major medical enough? no! who's gonna' help cover the holes in their plans? aflac! like rising co-pays and deductibles... aflac! or help pay the mortgage? or child care? aflaaac! and everyday expenses? aflac! learn about one day pay at aflac.com/boat blurlbrlblrlbr!!! it's more than a nit's reliable uptime.
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evans. first a community activist. a legislator at 25. always looking out for us. he worked to create a thriving commercial district. and he's brought new grocery stores to underserved areas. dwight evans is committed to revitalizing neighborhoods in all of philadelphia. he'll be a block by block congressman for us. i'm dwight evans and i'm proud to approve this message. hard to believe the football season kicks off next week with the nfl draft and each year there are more and more questions about the health and safety of both the adults and kids who play the game, particularly when it comes to brain injuries. joining us is a doctor who studies the impact of repeated head drama. dr. mckee, thank you for joining us today. >> it's my pleasure. >> you spent more than a decade
studying brains of former nfl players and found brain disease in 90 of the 94 players that you've looked at. how does head trauma turn into repeated head trauma turn into brain disease? >> the repetitive trauma, the trauma that doesn't result in concussion, the trauma that is found at every play of the game routinely, that over time, and it's a substantial amount of time, years of exposure to this mild head trauma that in some individuals leads to this progressive deterioration that usually shows up years later. >> it's called cte and i know a lot of people have heard about it but what are the symptoms of someone suffering from cte? >> the symptoms can be pretty varied. in the younger individuals, presenting in their 20s and 30s, it's often a change in their personality or behavior. they may become very irritable, have a short fuse, become depressed, become violent. and in the older individuals, it looks sim toe msim toe matly a
like alzheimer's disease. >> you think it's too dangerous for young people to play. why young people in particular? >> their brains are still developing. we think the juvenile brain is at risk. they don't handle changes in blood flow very easily and we know sometimes kids who have a second impact before a first impact has recovered will develop something called second impact syndrome. there's something about the youth brain that is particularly susceptible to damage from head trauma. >> there are a group of former nfl players suing for concealing information about concussion risks. in your opinion, can any helmet actually protect the brain? >> certainly helmets have prevented sudden death in football but they weren't designed really to mitigate the effects of the acceleration and deceleration injuries that occur and rotational injuries that occur with concussion. i think helmets can be devised
and that will improve a player's reaction to these forces but they will never be the answer. >> beyond football, what about risks and other sports, something like basketball and hockey or sports or other types of activities? >> any athletic activity or other activity that causes head impactses is at risk. soccer, in particular, ice hockey, rugby. but very occasionally, baseball and basketball. it really just depends on a number of injuries that these individuals sustain over a certain prolonged period of time. >> do you think we're getting better at trying to prevent some of these injuries? >> i think we're definitely getting better. awareness is so much greater than it was ten years ago. people are taking head injuries very seriously. i think the biggest problem is that we need to really get the head playing with the head out of all of the games. and also players of every sport to develop techniques and skill sets, strengthening their necks
to eliminate as much head contact as possible. and this will take just education with players and coaches and families. >> dr. mckee, thank you for joining us today. >> thank you. >> uh-huh. up next, we're "on the money," the strategy that promises to be a one size fits all solution for retirement savings. but is it the right one for you? and later, edible art. the business of crafting candy and eye-catching treats. they say that in life,
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>> it's a one-size-fits all approach. a mix of stocks and bonds and gets less risky over time. so for people not sure where to put their money, it's a good way to figure out how to get into mutual funds, how to get into the stock market and they don't know which ones to pick. >> the theory is you want to be younger and more aggressive and shift to more bonds as you get older because there's -- it's supposed to be safety in bonds? >> exactly. the idea is that as you approach retirement, you want to know that that is happening. and you may forget to do the proper allocation, asset allocation. >> sounds like a good deal. what are some of the downside risks. >> well, one of the things i need to point out is how much it's grown. people don't realize that they may be in that even if they haven't chosen to be in that. a lot of companies now, the default option on the 401(k) problem is to put you in a target date fund and you say when you retire and that's the fund they put you in.
that's why we've seen the assets balloon in the last ten years a little over $100 billion to over $700 billion. >> wow. >> there's a lot of money there. when that happens, you're right, you ever to know there may be risks and downsides to stuff like this. what people need to understand is that when you put your money in a target fund, it's not a guarantee that you're going to be able to retire when you want to at that date. the reason -- >> it's not an annuity. >> exactly. the year that is that target date of when you're supposed to retire means different things to different companies. it may be the year when it starts to get -- when the asset mix starts to get more conservative because you're approaching retirement or it may be the year that you're actually going to retire and you have to figure out what that mix is. >> so their idea of conservative is very different. >> tough really look into it. >> because mostly they are in 401(k)s, they have target-date funds. those are tax advantage funds. if you put that into a brokerage
account, the asset mix is changing. you're going to pay capital gains on. >> swap you out and moving you out of bonds? >> exactly. make sure you pay attention to the fees and to the manager of the fund as well because you want someone with a long track record who's had experience doing this. that's a key part as well. and look to see really whether that asset makes -- fits what your risk is. >> the lesson is, there's no such thing as autopilot? >> not really. i think it is a valuable asset for people who have no idea where to begin but you do need to take control of your own financial future and so don't just pick a target date fund and think the fund will do it for you. >> sharon, thank you very much. >> sure. up next, a look at the news for the week ahead and a delicious world of designer candy. mmm. our kate rogers looks at one entrepreneur's sweet success. >> is that okay? >> yes. to warn of danger from virtually anywhere. it's been smashed and driven. it's perceptive enough to detect other vehicles on the road. it's been driven and
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here are the stories coming up that may impact your money. lots of earnings this week. eight dow components are set to report including apple, facebook, amazon, exxonmobil and twitter. on monday, new home sales for march. tuesday, republican and democratic primaries will be held in connecticut, maryland, delaware, pennsylvania and rhode island. on wednesday, we'll see if the federal reserve will raise interest rates when the feds open market committee meets. thursday, the first quarter gdp
and for moms and dads out there, it's take your kids to work day. beauty is in the eye of the beholder and for one entrepreneur, that meant leaving the lingerie business behind for candy. it's a growing attraction for thousands of customers, even the whitney museum. our kate rogers has more on the sweet taste of success. >> reporter: cereal entrepreneur's candy is fine art with a wink and a nod. >> looks good? >> yes. >> reporter: the creator has taken a high brow approach. >> do you find it relaxing or therapeutic at all to sit here and paint? >> i love it. >> reporter: she emigrated to canada from israel as a child and started experimenting in the kitchen at a young age. >> what i'm really fascinated by is the transformation of materials so baking was exciting for me as a kid because it was a fantasy of it turning into
something else. >> reporter: that fascination with fantasy first helped jump-start her fashion career, including a lingerie line which, if you look closely, has some parallels offering customers something unexpected. but as her business grew, she felt farther and farther away from the end product. then came the candy. >> i wanted to get back to my roots of making art and i didn't have an art studio at the time and i started making small sculptures in my kitchen where i could make a mess. people started making orders and it grew into more and more orders where i started to look at the numbers and look at the opportunity and realized that it was a business. >> reporter: from there it was full speed ahead with her being drawn to the idea of creating a product from scratch again. >> the dream is to maintain the halo, maintain as much of this part as you can because it becomes more and more business as you grow. >> reporter: today, she's made candy for golden globe party and
adam sellman, a favorite designer of singer rihanna and other unconventional clients. >> i got a call from worldwide wrestling. >> really? >> yeah. >> what did they want? >> they wanted me to make them a big candy belt. you never know who is going to call and that's what is fun about it. it touches so many different people in different ways. >> reporter: the customer response is a sweet payoff. >> with candy, it's very acceptable so someone of any age or demographic or culture can appreciate it because everywhere in the world they have sugar. >> reporter: for "on the money," kate rogers in new york city. >> yes, they are fun. they can cost as little as $5 or into the thousands of dollars for custom pieces. if you're wondering, yeah, it tastes pretty good, too. that's the show for today. i'm becky quick. warren buffett's strategies and how they can help you build your savings, too.
keep it right here. we're "on the money." have a great weekend and we'll see you next week. do washinthey sure do,ans side because big oil pumps millions into their campaigns. bernie sanders is the only candidate for president who opposes fracking everywhere.
why? because fracking pumps dangerous cancer-causing chemicals into the ground and threatens our drinking water. bernie -- he can't be bought by them
right now on nbc 10 news today, the hunt is on for a person who abducted and raped a woman in west philadelphia. we'll tell you how she escaped after a gruelling 12-hour ordeal. >> and let delaware show the world that it is prepared to go forward in a political revolution. the candidates are here as the decision 2016 spotlight focuses on our region just days before the pennsylvania and delaware primaries. if you stepped outside we're of a